Of the various forms of investments available that involve possible tax incentives, the most widely used is real estate. Historically, real estate has been sold as an investment for income and long-term gain, as well as a hedge against inflation. Real estate investors actually profit from inflation because with a 30% equity, just a 3% inflationary increase in property values results in a 10% return on investment. Without even considering normal operating profits and tax benefits!

Real estate can be purchased in many forms, including: shopping centers, industrial buildings, warehouse net leases, apartments, single family residential housing, and even raw land. The investment can be direct, or through various kinds of partnerships and investment trusts.